Examples of the individual kinds of risk

The first stage of the risk identification begins the developments of a firm specific risk tree with the collection of all risks affecting the company targets and. The following illustration outlines example of a risk categorization:
Technological risks (business risks)

• Knowledge deficit: Is your enterprise strongly pending from the technological change?
• Does the danger of the “obsolescence” of the knowledge exist?
• Are there new processes in production?
• Are the downtimes how high?
• Is the production process susceptible to system crashes?

etc.

Achievement-economical risks (business risks)

• Procurement side: Does a dependence exist opposite few suppliers (single sourcing)?
• Are there substitution possibilities on the procurement side?
• Do they have problems with quality fluctuations with the input factors?
• Do they have problems with quality fluctuations with the output factors?
• Is the error frequency how high? Does it come due to wrong planning/vote frequently to extensions of deadline of projects/orders?
• Do you work process orientated?
• How does the vote between the individual functions take place?
• Research and development: Is the enterprise strengthens a technological change suspended (for example IT industry)?

etc.

Financialeconomical risks (business risks)

• Are the demand losses how high?
• Are the agreed upon dates of payment kept by the customers?
• Are liquid means/collateral present to sufficient extent?
• Are Finanzierungspielräume present?
• Does their enterprise derivatives financial instruments begin?
• Does your enterprise depend strongly on varying market prices?

etc.

Corporate Governance (business risks)

• Do you have problems with the procurement of qualified personnel?
• Are the fluctuation rates how high?
• Do they have a location disadvantage?
• Do they observe motivation and integrity gaps in the enterprise?
• Is time absent/disease days how high per annum?
• Do they have a team culture in the enterprise?
• How would you characterize the style of leadership in the enterprise? (More autocratically, authoritarian, bureaucratic ones, democratic ones, formal one, cooperative, laissez-faire, Liberalisti, Patriarchali, charismatic style of leadership)
• Try the strengths and the weaknesses of the organisational culture regarding customer, coworker, innovative, quality, to specify result and achievement orientation.
• Would you regard the organisational culture of your enterprise as “autopilot” for the implicit steering of the coworkers?

etc.

Social risks (business risks)

• Was the enterprise already confronted with trade restrictions?
• Exist does the danger of a strike/a riot in the company (addresses abroad?) /Sabotage/terrorism?
• Are cases of unfaithfulness/negligent behavior well-known with you?

etc.

Natural occurences (external risks)

• Do you have an address/a manufacturing plant in an earthquake-endangered area?
• Do you have an address/a manufacturing plant in an flooding-endangered area?
• Do you have an address/a manufacturing plant in an storm-endangered/hurricane-endanger area?

etc.

Social risks (external risks)

• Do they know cases of break-down theft/robbery in your enterprise?
• Does the danger of sabotage exist?

etc.

Political risks (external risks)

• Do you have an address/a manufacturing plant in a theater of war/war-endanger area?
• Is the enterprise subject to frequent changes of the legal sets of rules and regulations?
• Does the danger of nationalizations exist?
• Does the danger of a putsch exist?

etc.

Technical risks (external risks)

• Does a increased fire risk (high fire load) exist?
• Does a increased explosion risk exist?
• Does a bottleneck factor in your production (machine etc.) exist?
• Does a increased collapse risk exist?
• Have do you increases transport damages?

etc.

Personal risks (external risks)

• How many compulsorily notifiable (BG) accidents registered you per annum?
• Are there caused deaths by accident?

etc.

Alternative risk categorization
External risks

• Natural occurences
• Political changes
• Social changes
• Shifts of the market/new markets
• Legal developments
• Economic developments
• Supervision-legal changes
• Shifts of the branch trends
• Technical changes

Operational risks

• Logistics/selling
• IT security
• Humanly ressources
• Environmental risks
• Contract risks
• Project risks
• Customer satisfaction
• Quality
• “Health and Safety”/industrial safety
• Criminal actions
• Supplier
• Price strategy
• Customer perspective (loyalty etc.)
• Production development
• Mark value
• Production risks
• run cycle management
• Financial risks
• Liquidity
• Credit rating/debtor management
• Credit risk
• Investment control and – planning
• Taxes
• Derivatives
• Kapitalumschlag
• Company pension scheme
• Financing control/- planning

etc.

Strategic risks

• Market shares
• Mergers and Acquisitions
• Joint venture
• Resource allocation
• Humanly Capital
• Capacities
• Structure and sequence organization
• Alliances
• Crisis communication and – management

Strategic Risk Management

Risk management is more than the view into the rear view mirror

risk management was always already implicitly a component of the enterprise control. Frequently however only then one reacted if the enterprise were already in stormy lake or in acute distress. In the industry and in the trade it went primarily around the fulfillment from laws (something regulations concerning fire or industrial safety) or editions of the insurers (about VdS, HPR).

Risk is based a Konstrukt and on risk perception. Which for the risk is, needs to be for other still for a long time keins.

Risk management is more than the view in the log!

Due to itself in the past years the changed basic conditions for enterprises an per-active, systematic and getistic risk management is however a condition, in order to recognize and circumnavigate the cliffs in stormy lake in time. Increasingly globalized a competition on deregulierten markets, an increasing complexity as well as rapid developments within the range of the information technology (IT) cumulate to chances, in addition, risks for the enterprises. An increasing complexity of the enterprise processes and new decentralized firm’s structures as well as shorter response times, led to a new risk situation of the enterprises. The moreover enterprises are exposed to intensified rising costs. By “business intuition” and reactive control systems it might become ever more difficult to seize and analyze the complexity of the processes and risks.

Only that, which has the risks in the view, recognizes the chance-rich route!

An efficient risk management process functions similarly to the human organism or other network architecture in nature. In a perfect network co-operate brain, heart and nervous system. Networks are flexible and flexible, have common goals, will interaction and avoid hierarchies. Transferred to risk management this means that different sensors and sense (eye, ear, nerves etc.) take up the risks and to a central place passes it on (brain). And altogether the strategic adjustment of the system (enterprise) decides on the risk understanding.

The strategic risk management forms the integrative clip and the foundation for entire risk management of the process. At the strategic risk management particularly around the formulation of risk management goals in form of one ‚to risk politics’ as well as the bases of the organization of the risk management is. The selection of the risk management goals takes place here on the basis of different chance/risk conditions. A declaration of intent on the part of management, communicated obligatorily, is mandatory with the structure of a risk management.

The primary goals of the risk management are:

• Lasting increase of the enterprise value
• Protection of the company targets (achievement-economical, financial goals etc.)
• Protection of the future success of the enterprise
• Optimization of the risk costs
• Social goals from the social responsibility of the enterprise

One misses or several of these goals, then an enterprise is endangered in the existence. Without the support of management the installation of a functioning risk management will not be possible. Therefore the management and/or the executive committee is the highest instance during the definition the risk management of goals. In the context strategic risk management takes place the organizational imbedding in an enterprise as well as communication of the risk-political decisions of general principle. The risk management organization defines the structure-organizational framework. For the practical conversion to the operational processes it is important that risk management is lived and part of the organisational culture becomes.